Review report, state of Georgia, Carroll Technical Institute, Carrollton, Georgia, year ended June 30, 1994

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA CARROLL TECHNICAL INSTITUTE CARROLLTON, GEORGIA YEAR ENDED JUNE 30, 1994

CARROLL TECHNICAL INSTITUTE - TABLE OF CONTENTS -

~ SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

4

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGETFUND

5

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A"DEPARTMENTOFTECHNICALANDADULTEDUCATION

8

E

"B" LOTTERY FOR EDUCATION

9

F NOTES TO THE FINANCIAL STATEMENTS

10

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

22

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

23

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES .

BUDGET FUND

24

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

27

SCHEDULES

1 CASH AND CASH EQUIVALENTS

28

2 SCHEDULE OF FEDERAL REVENUES

29

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

30

CARROLL TECHNICAL INSTITUTE - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656 0494

. oF.,.,G.,, o~,,,,,,,'o I- , Ill
~epartmeut of J\.uhits
254 WASHINGTON STREET, SW ROOM 214
~tlmda, <B>eorgia 30334-8400
November 2, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Judy Hulsey, President Carroll Technical Institute
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through F) of Carroll Technical Institute as ofand for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note I, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of Carroll Technical Institute.
A review consists principally of inquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits G through J and Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been

94ARL-4T

subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we
Red are not aware of any material modifications that should be made thereto. submitted, _

CLV:cm 94ARL-4T

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

CARROLL TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1994

EXHIBIT "A" Page 1

GOVERNMENTAL FIDUCIARY FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL FIXED ASSETS

GENERAL LONG-TERM
DEBT

TOTALS (Manorandum Only)
JUNE 30, 1994 JUNE 30, 1993

ASSETS

Cash and Cash Equivalents (See Schedule)

$ 570,478.25 $ 49,192.16

$ 619,670.41 $ 119,376.14

Accounts Receivable State Funds Federal Financial Assistance Other
Inventories
Prepaid Items

$

0.00

91,936.93

81,136.73 $

372. 00

$ 173,073.66$ 372.00

$ 82,150.19

$

164.00

$

0.00 $ 1,346.01

91,936.93 117,746.49

81,508.73

79,785.69

------------- -------------

$ 173,445.66$ 198,878.19
------------- -------------

$ 82,150.19 $ 74,072.33
------------- -------------

$

164.00 $ 4,234.00

Fixed Assets Equipment

$1,776,725.62

$1,776,725.62 $1,490,170.95

Amount to be Provided for Payment of Accrued Canpensated Absences

$246,072.28$ 246,072.28$ 207,682.33

Total Assets

$ 825,866.10$ 49,564.16 $1,776,725.62 $ 246,072.28 $ 2,898,228.16 $ 2,094,413.94
============ =========== =========== =========== ============= ~=:===~-===

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 2-

CARROLL TECHNICAL INSTITUTE COMBINED BALANCE,SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1994

EXHIBIT "A" Page 2

GOVERNMENTAL FIDUCIARY FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL FIXED ASSETS

GENERAL LONG-TERM
DEBT

TOTALS (Menorandum Only)
JUNE 30, 1994 JUNE 30, 1993

LIABILITIES AND FUND EQUITY

Liabilities Accounts Payable Deferred Revenue Tuition and Fees Funds Held for Others Ccmpensated Absences

$ 697,798.63
4,949.00 $ 49,564.16

$ 697,798.63 $ 239,567.81

$ 246,072.28

4,949.00 49,564.16 246,072.28

34,154.00 20,394.51 207,682.33

Total Liabilities

$ 702,747.63 $ 49,564.16

$246,072.28$ 998,384.07 $ 501,798.65

Fund Equity

Investment in General Fixed Assets

Fund Ba1ance

Reserved

Federal Financial Assistance

For Refund to Georgia

Department of Technical

and Adult Education -

Adninistrative Central

Office

$

For Expired Grant Balances

Inventories

Live Work Projects

State Grants and Contracts

Unreserved

Designated

Surplus

Regular

Lottery for Education

861.46 1,592.70 61,940.88 51,237.54
73.30
7,374.39 38.20

$1,776,725.62

$1,776,725.62 $1,490,170.95

861.46 1,592.70 61,940.88 51,237.54
73.30

0.00 295.00 61,940.88 35,414.93
0.00

7,374.39 38.20

4,793.53 0.00

Total Fund Equity

$ 123,118.47

$1,776,725.62

$1,899,844.09 $1,592,615.29

Total Liabilities and Fund Equity

$ 825,866.10$ 49,564.16 $1,776,725.62 $246,072.28$ 2,898,228.16$ 2,094,413.94
=-----====== =====-===== ===----- ,-= =========== ============= =============

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonnation. The notes to the financial statements are an integral part of this statement.
- 3-

CARROLL TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30. 1994

EXHIBIT "8"

FUND BALANCE - JULY 1 Reserved Unreserved Designated Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "C" Prior Year's Checks Voided
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education Administrative Central Office Year Ended June 30, 1992 Year Ended June 30, 1993 Adjustments to Prior Year's Accounts Receivable Refunds to Granters Atlanta Regional Commission Job Training Partnership Act Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance Reserved Fund Balance Carried Over from Prior Year as Funds Available Uncollectible Debts Written Off
FUND BALANCE - JUNE 30 (To Exhibit "A")

BUDGET FUND YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 97,650.81 $ 104,338.26

4,793.53

7,189.02

$ 102,444.34 $ 111,527.28

$ 10,828.56$

6,126.91

51,014.23 1,069.20

36,516.77 0.00

$ 62,911.99 $ 42,643.68

$

0.00 $ 7,189.02

4,793.53

0.00

1,392.56

1,096.16

0.00

473.23

636.84
35,414.93 0.00

632.46
42,249.33 86.42

$ 42,237.86 $ 51,726.62

$ 123,118.47 $ 102,444.34
============ =====-

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 4-

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Fees Application Registration/Continuing Education Testing Interest Earned Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Live Work Projects

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$3,779,537.00$ 2,857,639.01 $1,189,119.56$ 1,253,020.60

$ 49,214.2B $ 10,795.04

27,000.00

13,491.00

22,570.69 184,397.55
B,565.50 1,375.10 90,014.12 621,383.33 16,205.54
-------------

21,488.75
233,866.89
8,415.05 5,083.19
82,292.57 513,lBS.08
1,008.32
-------------

$ 1,020,726.11 $ 889,628.89
------------- -------------
$ 5,989,382.67 $ 5,000,288.50

35,414.93

42,249.33

Total Funds Available

$6,024,797.60$ 5,042,537.83

EXPENDITURES

PERSONAL SERVICES-INSTITUTIONS

Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement

$2,852,728.90$ 2,795,478.17

66,843.79 311,476.11

56,275.76 294,011.81

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
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CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 2

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

EXPENDITURES

PERSONAL SERVICES-INSTITUTIONS

Employer's Contributions for: Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

$ 316,576.68$ 302,241.30

10,918.00

7,837.00

1,711.00

2,260.00

53,390.00

16,981.00

$3,613,644.48$ 3,475,085.04

OPERATING EXPENSES-INSTITUTIONS

Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Motor Vehicle Purchases Rental of Equipment Computer Charges Other Costs
Contracts Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
ADULT LITERACY GRANTS

$

9,931.23 $

9,456.00

324,515.21

339,235.31

36,997.27

26,967.28

156,555.69

124,915.64

615.00

4,240.64.

2,190.00

3,257.00

234,334.14

336,021.46

34,835.58

20,475.33

48,385.19

44,714.47

231,846.96
25,488.00 0.00

219,164.91
0.00 188.00

74.62 1,814.00
14,475.00 31,239.30

0.00 0.00
19,150.00
24,839.10

50,319.55

55,153.07

33,609.64

20,280.97

------------- -------------

$1,237,226.38$ 1,248,059.18
------------- -------------

Personal Services Salaries and Wages Employer's Contributions for:
F. I .C .A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

$ 426,093.89 $ 205,564.47

12,837.51 15,267.04
13,455.93 254.00
48.00 0.00

4,874.68 7,492.03
6,105.77 238.00 80.00 595.00

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 6-

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 3

EXPENDITURES
ADULT LITERACY GRANTS
Other Costs Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating Expenses
Travel Equipment
Equipment Purchases Motor Vehicle Purchases Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
JOB TRAINING PARTNERSHIP ACT
----------------------------
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance
Other Costs Supplies and Materials Other Operating Expenses
Travel Real Estate Rentals
EQUIPMENT - STATE SCHOOLS
Equipment Equipment Purchases
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 146,833.78 $ 2,532.50 6,270.00 6,266.32
10,861.83

39,955.40
93.95
0.00 3,410.04 5,887.90

38,577.74 23,240.20
1,600.00

7,077.27 0.00 0.00

57.06

402.33

0.00

1,100.00

------------- -------------

$ 704,195.80 $ 282,876.84
------------- -------------

$ 42,167.63 $

0.00

1,083.55

0.00

3,226.80

0.00

3,785.96

0.00

342.97

0.00

3,485.44

0.00

929.56

0.00

3,540.00

0.00

------------- -------------

$ 58,561.91 $

0.00

------------- -------------

$ 360,154.80$

0.00

$ 5,973,783.37 $ 5,006,021.06

51,014.23

36,516.77

$6,024,797.60$ 5,042,537.83
============= =============
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 7-

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1994

EXHIBIT "D"

FUNDS AVAILABLE REVENUES
State Funds Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$3,419,344.00$ 3,419,344.00$

0.00

1,365,917.00 1,189,119.56 -176,797.44

1,407,473.00 1,020,726.11 -386,746.89

$6,192,734.00$ 5,629,189.67 $ -563,544.33

0.00

35,414.93

35,414.93

EXPENDITURES Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act
Excess of Funds Available over Expenditures

$6,192,734.00$ 5,664,604.60$ -528,129.40
============= ------------- -------------

$ 3,778,595.00 $ 3,613,644.48 $ 164,950.52

1,497,525.00 1,237,226.38 260,298.62

847,037.00

704,195.80

142,841.20

69,577.00

58,561.91

11,015.09

------------- ------------- -------------

$6,192,734.00$ 5,613,628.57 $ 579,105.43
============= ------------- -------------

$ 50,976.03 $ 50,976.03

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Inform~tion. The notes to the financial statements are an integral part of this statement.
- 8-

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS.AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
5 LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1 1994

EXHIBIT "E"

FUNDS AVAILABLE REVENUES
State Funds
EXPENDITURES Equipment - State Schools
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 360,193.00$ 360,193.00 $

0.00

============= ------------- -------------

$ 360,193.00$ 360,154.80$

38.20

============= ------------- -------------

$

38.20 $

38.20

============= ========z===

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 9-

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Carroll Technical Institute is one of twenty-eight (28) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organiz.ational unit of the State of Georgia. The accompanying financial statements reflect the operations of Carroll Technical Institute as a separate reporting entity.
The Institute's Local Board of Directors is composed of eleven (11) members serving staggered three-year terms who are appointed by the State Board ofTechnical and Adult Education. Appropriation of State funds is made to the Georgia Department of Technical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount ofState funds to be received by Carroll Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Carroll Technical Institute is considered an organizational unit ofthe Georgia Department ofTechnical and Adult Education for financial reporting purposes because ofthe significance of its legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING Carroll Technical Institute uses funds and account groups to report on its financial position and the results of its operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device 'designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources.
Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. This fund also includes operations from various institutional services provided to students, faculty, and/or staff which are funded by fees charged to participants that are directly related to, but not necessarily equal to, the cost of service. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.

- 10 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
ACCOUNT GROUPS
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e.,expenditures) in net current assets.
GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis ofaccounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e.,when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis ofaccounting calls for expenditures, other than accrued interest ofgeneral long-term debt, to be recorded when the related fund liability is incurred.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. ,The recognition ofencumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
- 11 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
Contractual tenns ofcertain Federal grant agreements received by the Institute for vocational training services require that grant funds earned be recorded as Federal revenues rather than as revenues from tuition and fees. Accordingly, it is the Institute's policy to record certain Federal grant funds as Federal revenues and also as other revenues retained with offsetting expenditures for student expenses charged to the other operating expenses expenditure account. This accounting policy results in an overstatement of both revenues and expenditures in the financial statements for such Federal grants. This policy is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles.
Prior period adjustments are reported as additions to and deductions from fund balance ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
FIDUCIARY FUND TYPE AGENCY FUNDS
Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.
BUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriated funds and certain Federal funds for the various technical institutes throughout the State. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1993-1994. The budget allocation and disbursement of these funds is made to the various technical institutes by the Administrative Central Office. In addition, the technical institutes receive certain Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions. Cash and Cash Equivalents also include short-term, highly liquid investments with maturity dates within three months ofthe date acquired.
ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Administrative Central Office ofthe Department of Technical and Adult Education, reimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available.
- 12 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVENTORIES Expendable supplies are recorded as expenditures at the time of purchase and are not reflected on the Combined Balance Sheet (Statutory Basis).

Inventories of goods for resale are recorded as assets at cost at the time of purchase. The Institute uses the first-in, first-out method in costing-out inventories based on sales.

RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements:

FEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
Carroll Technical Institute receives Federal funds for the Adult Education Act, Carl D. Perkins Vocational and Applied Technology Education Act, and the Job Training Partnership Act through the Georgia Department of Technical and Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1994. At June 30, 1994, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office:

Adult Education Act Adult Education
Carl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Basic Grants to States Vocational Education - Community Based Organizations
Job Training Partnership Act

$ 111.46
37.00 0.80
712.20

$ 861.46

EXPIRED GRANT BALANCES Expired grant balances represent the unexpended balance ofFederal financial assistance, other than through the Administrative Central Office, remaining after the expiration of the Federal program/project. This amount is refundable to the applicable grantor.

INVENTORIES Reported inventories (resale), under the consumption method, are offset by a portion of State funds equal to the average quarterly inventories on hand for the fiscal year. This reservation of fund balance was established to provide working capital for managing a reasonable level of inventories for resale.

- 13 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
LIVE WORK PROJECTS The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects in subsequent fiscal years.
STATE GRANTS AND CONTRACTS The unexpended balance ofstate grants and contracts, other than through the Administrative Central Office, remaining after the expiration ofthe program/contract. This amount is refundable to the applicable grantors.
COMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. No liability has been .recorded in the Budget Fund for the current portion ofthis obligation as this amount will not be liquidated with expendable available financial resources. Funds are provided in the allotment of State funds each year to the Institute to cover the cost of annual leave paid to terminated employees.
The liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Institute's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
Certain reclassifications have been made to the comparative data in order to provide comparability with the current year classifications.

- 14 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may
pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, notes, certificates ofindebtedness, or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates of indebtedness, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State
of Georgia.
(5) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which include technical institutes) the option of exempting demand deposits from the collateral requirements.
COLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consists of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:
Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Institute or by its agent in the Institute's name.
Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Institute's name.
- 15 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

COLLATERALIZATION OF DEPOSITS Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the lnstitute's name, and amounts uncollateralized.

Carrying Amount

Bank Balances

Risk Categories

2

3

Cash Deposits

$ 618,670 41 $ 896,632.14 $ 200,000 00 $=====0=00- $ 696 632 14

NOTE 3: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition ofmoveable personal property (Official Code of Georgia Annotated Section 50-16-161), only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary of changes of equipment for the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1993 Additions Deductions Balance June 30, 1994

$1,490,170.95
313,354.67 26,800.00
$ 1,776,725.62

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July I, 1993 Additions
Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits (*)
Balance June 30, 1994

$ 207,682.33
33,573.57 4,816.38
$ 246,072 28

(*) Includes salary-related fringe benefits applicable to compensated absences at July 1, 1993.

- 16 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 5: DEFERRED COMPENSATION PLAN
The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, pennits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights ofthe State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System ofPersonnel Administration for the year ended June 30, 1994.
NOTE6: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA Substantially all employees are members of the Employees' Retirement System of Georgia or the Teachers Retirement System of Georgia. The Employees' Retirement System of Georgia is a single-employer, defined benefit pension plan, while the Teachers Retirement System of Georgia is a cost-sharing multiple-employer public employee retirement system.
These Retirement Systems were established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. Both Retirement Systems are funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage of annual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Institute contributed $74,461.28 to the Employees' Retirement System of Georgia and $255,508.67 to the Teachers Retirement System of Georgia. Participation in either Retirement System is not segregated by employee groups of individual governmental units and the Institute has no further liability under either Retirement System other than future employer contributions as established for each fiscal year. Information relative to each plan's description, funding status, and historical trends is presented in the financial reports of the Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN The State of Georgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Retirement Systems referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by
- 17 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE6: RETIREMENTPLANS

GEORGIA DEFINED CONTRIBUTION PLAN

the employer. A member who terminates employment may apply for a refund of contributions and interest.

Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon

discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their

account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with

the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by

the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan

description and funding status is presented in the financial report of the Employees' Retirement System of

Georgia for the year ended June 30, 1994.



NOTE 7: LEAVE POLICIES

Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month

depending upon the employees' length ofcontinuous State service with a maximum accumulation offorty-five

days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment.

See Note 1 - Compensated Absences



Employees earn one and one-quarter days of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination ofemployment.

Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.

NOTE 8: NONMONETARY TRANSACTIONS

The Administrative Central Office of the Georgia Department of Technical and Adult Education used lottery proceeds to purchase $3,705,587.80 equipment and to construct the Douglasville Satellite Center for Carroll Technical Institute during the fiscal year ended June 30, 1994. Those equipment items with an acquisition cost of $1,000.00 or greater will be reflected as received in the General Fixed Assets Account Group in the accompanying financial statements. However, revenues and expenditures for these lottery proceeds are not reflected in these financial statements.

The Georgia State Financing and Investment Commission (GSFIC), a unit of State government, is responsible for the issuance of state debt and for the investment and accounting for proceeds derived from the issuance of state debt. In addition, GSFIC is authorized to acquire and construct projects for the benefit of units of State government or to contract with units of State government for the construction or acquisition ofcapital outlay projects. During the fiscal year ended June 30, 1994, the Georgia State Financing and Investment Commission paid $2,713,016.12 to various vendors for approved projects related to Carroll Technical Institute;

- 18 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institute expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Carroll Technical Institute (as a unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
NOTE 10: BONDING INFORMATION
The President and all employees of Carroll Technical Institute are bonded under a Public Employees Blanket
Bond written by the Employers Insurance ofWausau, their Bond No.1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Carroll Technical Institute to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees ofCarroll Technical Institute are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Institute to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 19 -

SUPPLEMENTARY INFORMATION - 21 -

CARROLL TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS}
BUDGET FUND
JUNE 30. 1994

EXHIBIT "G''

ASSETS Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other
Inventories Prepaid Items

"A"
DEPARTMENT OF TECHNICAL ANO ADULT
EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

$ 253,448.60$ 317,029.65$ 570,478.25

$ 91,936.93 81,136.73

$ 173,073.66

$ 82,150.19

$

164.00

$ 91,936.93 81,136.73

$ 173,073.66

$ 82,150.19

$

164.00

Total Assets

$ 508,836.45$ 317,029.65$ 825,866.10
============= ============= =============

LIABILITIES AND FUND EQUITY

Liabilities Accounts Payable Deferred Revenue Tuition and Fees

$ 380,807.18$ 316,991.45$ 697,798.63

4,949.00

4,949.00

Total Liabilities

$ 385,756.18 $ 316,991.45$ 702,747.63

Fund Equity

Fund Balance

Reserved

Federal Financial Assistance

For Refund to Georgia Department of Technical and

Adult Education - Administrative Central Office $

861. 46

For Expired Grant Balances

1,592.70

Inventories

61,940.88

Live Work Projects

51,237.54

State Grants and Contracts

73.30

Unreserved

Designated

Surplus

Regular

7,374.39

Lottery for Education

$

$

861.46

1,592.70

61,940.88

51,237.54

73.30

38.20

7,374.39 38.20

Total Fund Equity

$ 123,080.27 $

38.20 $ 123,118.47

Total Liabilities and Fund Equity

$ 508,836.45 $ 317,029.65$ 825,866.10
============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.

- 22 -

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "H"

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

FUND BALANCE - JULY 1

Reserved Unreserved
Designated Surplus

$ 97,650.81 4,793.53 $

$ 97,650.81

0.00

4,793.53

$ 102,444.34 $

0.00 $ 102,444.34

ADDITIONS

Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "I"
Prior Year's Checks Voided

$ 10,828.56
50,976.03 $ 1,069.20

$ 38.20

10,828.56
51,014.23 1,069.20

$ 62,873.79 $

38.20 $ 62,911.99

DEDUCTIONS

Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1993
Adjustments to Prior Year's Accounts Receivable
Refunds to Granter Georgia Department of Technical ~nd Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available

$

4,793.53 $

1,392.56

636.84 35,414.93

0.00 $

4,793.53 1,392.56

636.84 35,414.93

$ 42,237.86 $

0.00 $ 42,237.86

FUND BALANCE - JUNE 30

(To Exhibit "G")

$ 123,080.27 $

38.20 $ 123,118.47

============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.

- 23 -

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 1

FUNDS AVAILABLE

REVENUES

STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office

FEDERAL REVENUES

OTHER REVENUES RETAINED

Contracts

Georgia Department of Human Resources

PEACH Project

Georgia Institute of Technology

Satellite Technology Program

Fees

Application

Registration/Continuing Education

Testing

,

Interest Earned

Sales and Services (Net)

Tuition

Other Sources

Total Other Revenues Retained

Total Revenues CARRY-OVER FROM PRIOR YEAR

Transfer from Reserved Fund Balance Live Work Projects

"A"
DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

$3,419,344.00$ 360,193.00$ 3,779,537.00

$ 1,189,119.56

$ 1,189,119.56

$ 49,214.28
27,000.00
22,570.69 184,397.55
8,565.50 1,375.10 90,014.12 621,383.33 16,205.54

$ 49,214.28
27,000.00
22,570.69 184,397.55
8,565.50 1,375.10 90,014.12 621,383.33 16,205.54

$ 1,020,726.11

$ 1,020,726.11

$ 5,629,189.67 $ 360,193.00$ 5,989,382.67

35,414.93

35,414.93

Total Funds Available

$5,664,604.60$ 360,193.00$ 6,024,797.60

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insufance

$ 2,852,728.90
66,843.79 311,476.11 316,576.68

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 24 -

$ 2,852,728.90
66,843.79 311,476.11 316,576.68

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I"
Page 2

"A"
DEPARTMENT OF TECHNICAL AND ADULT
EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

EXPENDITURES

PERSONAL SERVICES-INSTITUTIONS

Employer's Contributions for: Liability Insurance Unemployment Compensation Insurance
Workers' Compensation Insurance

$ 10,918.00 1,711.00 53,390.00

$ 10,918.00 1,711.00 53,390.00

$ 3,613,644.48

$ 3,613,644.48

OPERATING EXPENSES-INSTITUTIONS

Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Uti 1it i es Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Motor Vehicle Purchases Computer Charges Other Costs
Contracts Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
ADULT LITERACY GRANTS

$ 9,931.23 324,515.21 36,997.27 156,555.69 615.00 2,190.00 234,334.14 34,835.58 48,385.19
231,846.96 25,488.00
74.62 1,814.00 14,475.00 31,239.30
50,319.55 33,609.64
-------------
$1,237,226.38
-------------

$

9,931.23

324,515.21

36,997.27

156,555.69

615.00

2,190.00

234,334.14

34,835.58

48,385.19

231,846.96 25,488.00

74.62 1,814 .. 00 14,475.00 31,239.30
50,319.55 33,609.64
-------------
$1,237,226.38
-------------

Personal Services Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Liability Insurance
Unemployment Compensation Insurance Other Costs
Supplies and Materials Repairs and Maintenance
Rents (Other than Real Estate) Other Operating Expenses

$ 426,093.89
12,837.51 15,267.04 13,455.93
254.00 48.00
146,833.78 2,532.50 6,270.00 6,266.32

$ 426,093.89
12,837.51 15,267.04 13,455.93
254.00 48.00
146,833.78 2,532.50 6,270.00 6,266.32

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 25 -

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30 1 1994

EXHIBIT "I" Page 3

EXPENDITURES
ADULT LITERACY GRANTS
Travel Equipment
Equipment Purchases Motor Vehicle Purchases Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
----------------------------
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance
Other Costs Supplies and Materials Other Operating Expenses
Travel Real Estate Rentals
EQUIPMENT - STATE SCHOOLS
; Equipment Equipment Purchases
Total Expenditures Excess of Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT
EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$ 10,861.83
38,577.74 23,240.20
1,600.00
57.06
------------$----7-0-4-,-1-9-5-.8--0

$ 10,861.83
38,577.74 23,240.20
1,600.00
57.06
-------------
$ 704,195.80
-------------

$ 42,167.63
1,083.55 3,226.80 3,785.96
342.97 3,485.44
929.56 3,540.00
-------------
$ 58,561.91
-------------

$ 42,167.63
1,083.55 3,226.80 3,785.96
342.97 3,485.44
929.56 3,540.00
-------------
$ 58,561.91
-------------

$ 360,154.80 $ 360,154.80

$ 5,613,628.57 $ 360,154.80 $ 5,973,783.37

50,976.03

38.20

51,014.23

$5,664,604.60$ 360,193.00$ 6,024,797.60
============= ============= ==========~==

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 26 -

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1994

EXHIBIT "J"

FUND
Flex Insurance General Scholarship Fund HOPE Program Pell Grant Program Student Activities Fund Student Insurance Supplemental Educational Opportunity
Grant Program Federal Local

ASSETS/ LIABILITIES
J-U-L-Y---1-'--1-9-9-3

ADDITIONS
---------

DELETIONS
---------

ASSETS/
LIABILITIES
JUNE 30, 1994
-------------

$

0.00 $

0.00 $

25.00 $

-25.00

4,351.30

9,579.00

8,300.80

5,629.50

0.00

279,539.00

260,385.00

19,154.00

0.00 481,160.00 480,867.00

293.00

16,043.21

28,090.61

19,621.16

24,512.66

0.00

455.00

455.00

0.00

0.00

15,687.00

15,687.00

0.00

0.00

4,929.00

4,929.00

0.00

------------- ------------- ------------- -------------

$ 20,394.51 $ 819,439.61 $ 790,269.96$ 49,564.16
============= ============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 27 -

CARROLL TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30. 1994
NONINTEREST BEARING ACCOUNTS
NationsBank of Georgia, N. A., Carrollton, Georgia INTEREST BEARING ACCOUNTS
NationsBank of Georgia, N. A., Carrollton, Georgia OTHER
Petty Cash

SCHEDULE "l'1

$

5,640.50

613,029.91
1,000.00
$ 619,670.41
=========a

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28 -

CARROLL TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1994

SCHEDULE "2"

BUDGET FUND
Education, U. S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office
Federal Work-Study Program Direct
Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Rehabilitation Services - Basic Support Through Alabama Department of Rehabilitation Services Through Georgia Department of Human Resources
Vocational Education - Community Based Organizations Through Georgia Department of Technical and Adult Education - Administrative Central Office
Tech-Prep Education Through Carroll County Board of Education Through Coweta County Board of Education Through Douglas County Board of Education Through Haralson County Board of Education Through City of Bremen Board of Education Through City of Carrollton Board of Education
Energy, U. S. Department of State Energy Conservation Stripper Well Oil Violation Funds Through Georgia Department of Technical and Adult Education - Administrative Central Office
Health and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of Family and Children Services
Labor, U. S. Department of Job Training Partnership Act Through Atlanta Regional Commission Through Coosa Valley Regional Development Center Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Griffin Regional Educational Service Agency
Veterans Affairs, U. S. Department of Vocational Rehabilitation for Disabled Veterans Direct

CFDA NUMBER

AMOUNT

84.002
84.033
84.048
84 .126 84.126
84 .174
84.243 84.243 84.243 84.243 84.243 84.243

$ 263,185.00
11,015.00
343,506.72
1,154.24 3,703.50
10,000.00
8,272.38 8,692.38 8,472.38 8,272.38 7,852.38 7,220.00

81.041

18,310.55

93.561
17.250 17.250 17.250 17.250
64. 116

84,773.45
183,881.33 81,859.17 59,115.66 77,085.57
2,747.47
-------------
$1,189,119.56

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

CARROLL TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30 1 1994

SCHEDULE "3"

Totals per Annual Supplement

Accruals June 30, 1994 June 30, 1993

Adjustments

Shared Services on Jointly Staffed Personnel

West Georgia Technical Institute

Bradley,

John

Other Ayers, Bailey, Marlow,

Mark Brenda Betty

Totals per Report

SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act

SALARIES AND WAGES

TRAVEL

$3,318,989.86$ 61,489.56

1,836.21 -2,513.23

1,738.06 262.50

192.00 -827.96

$ 3,320,990.42 $ 60,176.58
============= ===========

$ 2,852,728.90
$ 426,093.89
42,167.63

48,385.19 10,861.83
929.56

$ 3,320,990.42 $ 60,176.58
============= ============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 30 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

I
CARROLL TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements Inadequate Accounting Procedures Audit Control Number 826-94-0 I
For the year under review, the Carroll Technical Institute's accounting procedures did not provide for adequate internal control over the bank reconciliation process. The following deficiencies were noted:
( 1) The June bank statement for the Scholarship bank account was not reconciled to the general ledger. Adjustments were necessary to reconcile the accounting records with bank statements.
(2) Book errors disclosed through the bank reconciliation process were carried as reconciling items for extended periods of time.
The Institute should implement appropriate procedures and controls to ensure that all bank statements are reconciled to the general ledger on a timely basis and that all reconciling items are identified and corrected promptly.